Investment Objective

The objective of the Fund is to seek attractive risk-adjusted returns (recurring yield and capital appreciation) by employing a disciplined investment approach to invest in Vietnam’s real estate projects. Key drivers of return are (i) profits from real estate development projects, (ii) recurring income from income-producing properties and (iii) exit of investments.

Investment Strategy

  • The Fund plans to invest in high quality industrial and logistics real estate projects/assets on a value basis
  • We will focus on 3PL and e-commerce warehouses and cold storage facilities on a value-add and development basis, and factories for manufacturers on a sale & leaseback basis
  • Focus on assets in good locations and with high barriers to entry
  • We will work with our development and operating partners to leverage an operations-oriented approach to enhance value
  • Seek to execute opportunistic exits in order to maximize value (IPO, strategic sale)

Fund Detail

Fund Name Vietnam Industrial & Logistics Real Estate Fund I

(“VILREF I”)

Fund Directors Kiet The Truong
Reference Currency USD
Fund Size USD 100mn
Target Return 20% IRR in USD (gross)
Investment Focus Industrial & logistics real estate projects in Vietnam
Fee Structure 2.0% annual management fee

20% performance fee

Hurdle Rate 8%
Structure Closed-end fund
Minimum Subscription USD 250k for individual

USD 5mn for institution

Co-Investment Right Co-investment right for anchor investors with subscription of USD 25mn
Expected Closing 3Q 2021

Why Invest in Vietnam Logistics Real Estate?

  • Macro Economic Growth and Political Stability: Vietnam is forecasted to grow at 7%/annum over the next 5 years, outranking other Asian countries, and is one of the most politically stable countries in Asia
  • Supply Chain Diversification: As a result of the supply chain diversification effort, China’s manufacturing base is gradually shifting to Vietnam, increasing demand for Industrial and Logistics, a sector already in tight supply in Vietnam
  • Strong and Consistent Foreign Direct Investment (FDI): A young and low-wage workforce coupled with Free Trade Agreements (FTA) involving more than 50 partners will continue to help Vietnam attract strong FDIs over the years, further boosting wage growth and domestic consumption
  • Growing Middle Class and Urban Populations: The growth and maturity of Vietnam’s middle class and rising urbanization rate present compelling investment opportunities for Industrial and Logistics real estate
  • Stable Yield and Capital Appreciation: Industrial and logistics assets in Vietnam offer stable/high cash flow yield and capital appreciation potential driven by tight supply (as evidenced by high occupancy, rising rent) and increase demand
  • Covid-19 Impact: Covid-19 has created a short-term buying opportunity

Competitive Advantages   Management Team
Leadership
  • Vietnamese with more than 20 years of experience in Vietnam’s real estate market
  • Track record of investing, developing and managing real estate assets and investment funds
Kiet The Truong

Managing Director

  • Mr. Kiet has 22 years of experience in real estate, private/listed equity, fixed income and fund management. He has invested and/or advised on more than US$600 million worth of real estate transactions.
  • Founder & CEO, Five Elements Development. Real Estate Development company specializing in commercial real estate (hotel/resort, office)
  • Founder and Managing Director, Vietbridge Capital. Real estate and pre-IPO equities fund
  • Director, Indochina Capital, Vietnam. The first real estate fund in Vietnam with $400m AUM
  • Equity Research Analyst, Morgan Stanley, Hong Kong
  • Education

♦BA from Columbia University

♦Master from Harvard University

♦Chartered Financial Analyst (CFA)

♦Chartered Alternative Investment Analyst (CAIA)

Deal Sourcing
  • Existing pipeline of secured projects
  • Strong deal sourcing capability as part of Viet Capital platform
Execution Capability
  • Ability to mitigate legal and operational risks with extensive relationship with government agencies at all levels
  • Systematic investment process with a team of investment professionals, accounting/finance and service providers that can execute transactions